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On January 1 Year 1 , Gordon Corporation issued bonds with a face value of $ 7 0 , 0 0 0 , a stated
On January Year Gordon Corporation issued bonds with a face value of $ a stated rate of interest of and a year term to maturity. The bonds were issued at Interest is payable in cash on December each year. Gordon uses the straightline method to amortize bond discounts and premiums.
Which of the following shows the effect of the first interest payment and amortization of the premium or discount on the financial statements?
Balance Sheet Income Statement Statement of Cash Flows
Assets Liabilities Stockholders Equity Revenue Expense Net Income
A na na na na FA
B na FA
C na OA FA
D na OA
Multiple Choice
Option C
Option B
Option A
Option D
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